COMMON CAUSE, A REGISTERED SOCIETY versus UNION OF INDIA & ORS.

Citation: [1999] 3 S.C.R. 1279 · Decided: 03-08-1999 · Supreme Court of India · Bench: S. SAGHIR AHMAD · Disposal: Case Allowed
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Judgment (excerpt)

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COMMON CAUSE, A REGISTERED SOCIETY 
v. 
UNION OF INDIA & ORS. 
AUGUST 3, 1999 
[S. SAGHIRAHMAD, K. VENKATAS1WAMI AND 
S. RAJENDRA BABU, JJ.] 
Administrative Law : 
A 
B 
Public Functionary-Minister-Allotment of petrol pumps out of C 
discretionary quota-Cancellation by Supreme Court on the ground of 
arbitrary exercise of power-Imposition of exemplary damages of rupees fifty 
lakhs on the Minister-Held not valid-Direction to CB.I to investigate 
offence of criminal breach of trust or any other offence-Held not legal. 
Constitution of India, 1950 : 
Articles 226 and 32-Public Law-Private Law-Remedies-Violation 
of fundamental rights-Remedy available in public law-Also available in 
cases of torts. 
D 
Judicial Review-Minister-Allotment of petrol pumps out of E 
discretionary quota-Question of abuse C?f discretion-Matter not considered 
in the House-Held judicial review of such a question was permissible. 
Supreme Court-Power to rectify its own mistake . 
Article 21-Right to life-Right to enjoy life without fetters-No general F 
direction can be issued to CB.I or to police whether a man has committed 
any offence or is living as a law abiding citizen. 
Article 75(3)--Cabinet-"Col/ective Responsibi/ity"-Meaning of 
Article 77(3)-Government of Indi~onduct of business-A/location O 
of business to Ministers-Object is smooth and better administration-A 
Minister does not become a trustee. 
Articles 77(1)(2) and 360-President-Judicial immunity of-Immunity 
available to President cannot be extended to the orders passed in the name 
of the President under Article 77(1) or 77(2). 
1279 
H 
1280 
SUPREME COURT REPORTS 
[1999] 3 S.C.R. 
A 
Articles 142-Directions passed by Supreme Court-Held cannot ignore 
substantive provisions of law much less the constitutional rights available 
to a person. 
Article 300-Act of State--What is-Minisr'.r--Allotment of petrol 
pumps-discretionary quota-Held exercise of such discretionary power is 
B not an act of State. 
Tort-Damages-Exemplary damages-Relevant considerations for 
determination of-Claimant of damages must be a victim-Award of exemplary 
damages against a Minister for arbitrary .allotment of petrol pumps under 
C discretionary quota held not sustainable. 
Misfeasance in public office-Essential requirements of-Plaintiff who 
suffered must be identifiable. 
Indian Penal Code, 1860 : 
D 
Sections 405 and 409--Criminal Breach of trust-Ingredients of 
offence-Entrustment of property-Minister-Exercise of discretionary power 
to allot petrol pumps-Held mere exercise of "power to allot" cannot be 
treated as property. 
E 
Doctrine of public trust-Origin of--Applicability in the context of 
frxing criminal liabiliiy. 
Words and Phrases: 
'Tort'-' Damages '-Meaning of 
F 
The Minister of State for Petroleum and Natural Gas in the Central 
Government, Captain Satish Sharma, made allotment of 15 retail petrol 
outlets out of his discretionary quota. By its decision entitled Common 
Cause, a Regd Society v. Union of India, [1996] 6 S.C.C. 530, the Supreme 
Court cancelled the allotments and issued a show cause notice to the Minister 
G (i) As to why a direction be not issued to the police to register a case and 
initiate prosecution against him for criminal breach of trust or any other 
offence under law, and (ii) Further why he should not be made liable to pay 
damages for his malajide action in allotting the fifteen petrol pumps. The 
Minister replied to the show cause notice and by its judgment viz. Common 
Cause, a Regd. Society v. Union of India, [1996] 6 SCC 593, this Court 
H held that (i) Actions of the Minister were wholly arbitrary and mqlajide; (ii) 
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COMMON CAUSE, A REGTD. SOCIETY v. U.O.I. 
1281 
The Minister should pay a sum of rupees fifty lakhs as exemplary damages A 
to the Govt. exchequer. This Court also held that a Minister holds a trust 
on behalf of the people and he has to deal with the people's property in a fair 
and. just manner. A direction was also issued to the Central Bureau of 
Investigation to-conduct investigation against the Minister for (a) the offence 
of criminal breach of trust; (b) or "any other offence." This Review Petition B 
has been filed against the aforesaid two judgments. 
On behalf of the petitioner it was contended that: 
(1) The petitioner being a Minister of state in the Union Cabinet 
was a part of the Govt. and his act being the act of president, c 
the same could not be challenged before a Court of Law; 
(2) The petitioner having acte
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